Has FF secured another $105 million in financing? Why can Jia Yueting always get funding?

In the entire Chinese new energy vehicle market, Jia Yueting and his FF company can be said to be very special. Since leaving for the United States, FF has never been able to achieve mass production. However, from going abroad to build cars to the listing of FF, from the difficult birth of cars to always being able to get investments, Jia Yueting seems like an indestructible cockroach. Why has Jia Yueting always been able to get investments?

1. Did FF Obtain Another $105 Million in Financing?

According to CNMO Technology, Faraday Future (FF), an electric vehicle company founded by Jia Yueting, announced that it has completed a financing agreement of approximately $105 million, including a new financing commitment of $82 million, to support the production and delivery of its first mass - market model, the FX Super One, and accelerate the implementation of the dual - brand strategy of FF and FX and the application of AI technology.

Faraday Future said that this financing mainly comes from the issuance of unsecured convertible notes and warrants. The participants include FF's Middle East strategic partner, Master Investment Group, and other new and old institutional investors. The financing terms are more favorable than before, reducing the dilution of existing shareholders and setting a lock - up period.

Jerry Wang, the global president of FF, said that this funds will significantly enhance the company's ability to promote the mass production and delivery of the FX Super One, helping it to launch cost - effective smart electric vehicles in the North American market and aiming to become the leader in this segmented market. It is reported that the FX Super One, Super EAI F.A.C.E., and the FF EAI embodied intelligent agent 6x4 architecture will make their global debut on July 17.

According to "Investors", FF was able to successfully raise $105 million because Jia Yueting has a new story. He has shifted from selling cars to individual consumers globally to corporate or self - employed consumers, to a certain extent avoiding the fierce competition in the global new energy market and painting a "new picture" for the capital.

2. Why Can Jia Yueting Always Get Money?

Against the background of numerous doubts and difficulties, Jia Yueting always seems to be able to attract funds with his unique "charm". What kind of logic lies behind this?

First of all, after Jia Yueting left for the United States, he entered a special state. He was burdened with huge debts and should have been in a desperate situation. However, the dream of building cars has become a delicate link between him and his creditors. For many creditors, Jia Yueting's car - building project seems to be a glimmer of hope in the dark. They know that if Jia Yueting goes bankrupt, the creditor's rights in their hands may become worthless. As long as there is still a glimmer of hope for Jia Yueting's car - building dream, they still have the possibility of recovering part of their debts.

This psychology makes creditors' attitudes towards Jia Yueting rather complex. They are both dissatisfied and worried about Jia Yueting's past acts of breaking trust, and they dare not easily push Jia Yueting into a desperate situation. This special debt relationship provides a certain living space for Jia Yueting, allowing him to continue to deal with difficulties and creating certain potential conditions for subsequent financing activities.

Secondly, it is undeniable that Jia Yueting is very good at telling stories. He has excellent packaging and concept - creating abilities and can always come up with appealing concepts at the right time to attract the attention of all parties. Starting from the early concept of "ecological synergy", Jia Yueting showed his keen insight into the market and public opinion. He depicted a grand business ecological blueprint, integrating multiple fields such as the Internet, technology, and entertainment, making investors and consumers seem to see a brand - new business future. This concept caused a huge sensation at that time, attracting a large amount of funds and resources into the LeEco ecosystem.

In the field of car - building, Jia Yueting has taken story - telling to the extreme. He regards car - building not only as a business activity but also as a great mission to change the way of travel and promote technological progress. He constantly emphasizes the innovation, forward - looking nature of FF cars and their profound impact on the future travel industry. For example, FF cars emphasize a sense of technology and future in design and are equipped with many advanced technologies and functions, which are all packaged by Jia Yueting as revolutionary selling points.

Moreover, Jia Yueting has also skillfully adjusted the target market. He no longer focuses only on ordinary consumers but turns his attention to the huge consumer group of enterprises and self - employed individuals. For this group, he tells the unique advantages of FF cars in business operations, high - end customization, etc., depicting a beautiful picture of an efficient, convenient, and personalized travel solution for enterprise users. This precise market positioning and targeted story - telling have enabled FF cars to gain certain attention and recognition in specific fields and added bargaining chips to the financing activities.

Thirdly, although Jia Yueting and his team can continuously tell exciting stories, the capital market ultimately values actual results rather than empty promises. If FF cannot quickly launch a convincing product and achieve success in the market, then no matter how hard Jia Yueting tries to promote his vision, he may ultimately fail to win the trust and support of investors. After all, for any enterprise to survive and develop in the long term, it must have a solid product foundation and a stable profit model. Otherwise, even if it obtains capital injection in the short term, it cannot maintain the healthy development of the enterprise in the long run.

Fourthly, in the long run, Jia Yueting doesn't have much time left. Although FF can obtain financing from time to time, these funds can only temporarily relieve the company's financial pressure and cannot fundamentally solve the problems the company faces. If FF cannot provide a satisfactory answer to investors in a short time, cannot launch market - competitive products and achieve large - scale sales, then it is very likely to follow in the footsteps of LeEco and end up in bankruptcy.

This article is from the WeChat public account "Jianghan Vision Observation". Author: Jianghan Vision Observation. Republished by 36Kr with authorization.